Clean Science & Technology Limited, a prominent player in the specialty chemicals sector, witnessed a significant change in its shareholding structure as six promoters collectively sold a 24% stake in the company through on-market transactions on August 21, 2025.

Transaction Details

The sellers, all part of the promoter group, included:

1. Krishnakumar Ramnarayan Boob
2. Nilima Krishnakumar Boob
3. Shradha Kariwala
4. Ashok Ramnarayan Boob
5. Asha Ashok Boob
6. Parth Ashok Maheshwari

Together, they disposed of approximately 2.55 crore shares of Clean Science & Technology Limited. This substantial sale was executed on both the BSE Limited and the National Stock Exchange of India Limited.

Impact on Promoter Holding

The transaction has led to a significant reduction in the promoter group's stake in the company:

• Before the sale: 74.97% of the company's equity
• After the sale: 50.97% of the company's equity

This represents a decrease of 24 percentage points in the promoter group's holding.

Individual Promoter Stakes Post-Transaction

Following the sale, the individual stakes of the selling promoters have been adjusted as follows:

Company's Financial Standing

While the promoter stake sale is a significant development, Clean Science & Technology Limited continues to maintain a strong financial position. In a recent update, CRISIL Ratings Limited reaffirmed the company's credit ratings on August 25, 2025:

• Long Term Rating: CRISIL AA-/Stable
• Short Term Rating: CRISIL A1+

These ratings indicate a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

Market Implications

The substantial stake sale by promoters could potentially impact market sentiment and may lead to increased trading activity in Clean Science & Technology Limited's shares. Investors and market analysts will likely be watching closely to see if this change in promoter holding leads to any shifts in the company's strategic direction or operational focus.

As of June 30, 2025, Clean Science & Technology Limited had a total of 10,62,67,259 equity shares outstanding, each with a face value of ₹1. The company continues to be listed on both the BSE and NSE, providing liquidity for its shareholders.

A significant trading error involving Clean Science & Technology Ltd. has brought to light potential weaknesses in India's block deal system, prompting regulatory authorities to consider changes to the existing framework.

The Incident

Avendus Capital's unit inadvertently executed duplicate trades while attempting to sell 24% of Clean Science shares, valued at approximately $300 million. The error occurred because the trades were conducted during regular market hours instead of India's dedicated 15-minute block deal windows.

Block Deal System Limitations

The incident highlighted key limitations in the current block deal system:

• Block deal windows only allow discounts up to 1%
• Clean Science shares were offered at a 13% discount, exceeding the block deal limit

Proposed Changes by SEBI

In response to this incident, India's Securities and Exchange Board (SEBI) has proposed several changes to the block deal system:

1. Tripling the discount limit from 1% to 3%
2. Raising minimum trade sizes from 100 million rupees to 250 million rupees

Block Deals in India's Market

The incident has drawn attention to the growing popularity of block deals in India:

• Block deals have overtaken IPOs as a preferred method for large investors to reduce holdings
• Market experts suggest that large block deals relative to company size should be conducted in separate block windows to prevent similar incidents

Implications for Market Participants

This trading error and the subsequent regulatory response highlight the need for:

1. Enhanced safeguards in the block deal system
2. Greater awareness among market participants about the limitations and risks associated with large trades
3. Potential improvements in trade execution processes to prevent duplicate transactions

As the Indian stock market continues to evolve, incidents like this serve as catalysts for regulatory improvements aimed at maintaining market integrity and protecting investor interests.